Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors

Are you keeping a close watch on Tempest Therapeutics, Inc. (TPST) and wondering about its financial stability? With a recent $30 million private placement and a focus on advancing its oncology programs, understanding the company's financial health is crucial for investors. How will the company manage its operating expenses, which totaled $73.4 million in 2023, especially with a significant portion allocated to research and development? As the company navigates its cash runway and strategic priorities, what key financial indicators should you be monitoring to make informed decisions about TPST?

Tempest Therapeutics, Inc. (TPST) Revenue Analysis

As a clinical-stage oncology company, Tempest Therapeutics, Inc. is currently focused on developing novel therapies, and as such, it does not have products on the market generating revenue. Therefore, an analysis of revenue streams in the traditional sense is not applicable.

Instead, financial health is assessed through available assets, expenditures, and funding. Keep in mind that as of now, the company's financial strategy is centered around research and development investments.

For detailed insights into the company's goals and operational focus, refer to: Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).

Tempest Therapeutics, Inc. (TPST) Profitability Metrics

Analyzing Tempest Therapeutics, Inc.'s profitability requires a detailed look at its financial performance, specifically focusing on gross profit, operating profit, and net profit margins. Given the dynamic nature of the biotechnology industry, these metrics provide critical insights into the company's efficiency and overall financial health.

As of the fiscal year 2024, comprehensive profitability data for Tempest Therapeutics, Inc. is not fully available. Typically, to assess profitability, one would examine:

• Gross Profit: The revenue remaining after deducting the cost of goods sold (COGS). For a biotech company like Tempest Therapeutics, this would involve the costs associated with research, development, and manufacturing of their therapeutic products.
• Operating Profit: This is calculated by subtracting operating expenses (such as administrative and marketing costs) from the gross profit. It indicates how well the company is managing its operational costs.
• Net Profit: The profit remaining after all expenses, including interest and taxes, are deducted from revenue. This is a key indicator of overall profitability.

To provide a clearer picture, we can analyze available data and trends from previous years, keeping in mind that the biotech industry often involves significant R&D investments and variable revenues based on clinical trial outcomes and partnerships.

Given the limited real-time profitability data for 2024, a comparative analysis with industry averages can offer some perspective. The biotechnology industry is characterized by high R&D costs and regulatory hurdles, which often result in lower initial profitability. Companies in this sector typically invest heavily in research and development, impacting their short-term profitability.

Operational efficiency is crucial for biotech firms. Key factors include:

• Cost Management: Efficiently managing R&D expenses, clinical trial costs, and administrative overhead.
• Gross Margin Trends: Monitoring trends in gross margins to ensure that the company is effectively managing production costs and pricing strategies.

For more detailed insights, you can refer to Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors.

Tempest Therapeutics, Inc. (TPST) Debt vs. Equity Structure

Understanding how a company like Tempest Therapeutics, Inc. (TPST) manages its debt and equity is crucial for investors. It provides insights into the company's financial stability and growth strategy. Let's delve into the specifics of TPST's approach to financing.

Analyzing Tempest Therapeutics, Inc.'s (TPST) debt levels involves examining both its short-term and long-term obligations. Short-term debt includes liabilities due within a year, while long-term debt covers obligations extending beyond that timeframe. As of the fiscal year 2024, a detailed breakdown of these figures would offer a clear picture of the company's immediate and future financial commitments. For instance, knowing the exact amount of short-term liabilities versus long-term debt helps in assessing the company's ability to meet its upcoming obligations and its overall solvency.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A high ratio suggests that the company relies more on debt, which can amplify both profits and losses. Conversely, a lower ratio indicates a greater reliance on equity, which generally signifies lower risk. Comparing Tempest Therapeutics, Inc.'s (TPST) debt-to-equity ratio with industry standards provides context on whether the company's leverage is typical or deviates significantly. To get a specific debt-to-equity ratio, one would typically refer to the company's latest financial statements. Keep in mind, that as of today, April 20, 2025, the 2024 data is the most up-to-date.

Keeping track of recent debt issuances, credit ratings, or refinancing activities offers insights into how Tempest Therapeutics, Inc. (TPST) manages its debt portfolio. New debt issuances might indicate that the company is raising capital for expansion or other investments. Credit ratings, assigned by agencies like Standard & Poor's or Moody's, reflect the creditworthiness of the company. Refinancing activities could mean the company is taking advantage of lower interest rates or restructuring its debt to improve its financial position. The specifics of these activities would be detailed in TPST's financial releases and reports.

Striking the right balance between debt and equity is vital for sustainable growth. Debt financing can provide capital without diluting ownership, but it also comes with the obligation to repay principal and interest. Equity funding, on the other hand, doesn't require repayment but dilutes ownership. Tempest Therapeutics, Inc.'s (TPST) strategy in balancing these two forms of financing reflects its overall financial philosophy and growth ambitions. Here are some considerations:

• Risk Tolerance: A company's willingness to take on financial risk influences its debt levels.
• Growth Stage: Early-stage companies might rely more on equity, while mature companies might leverage debt for specific projects.
• Market Conditions: Interest rates and investor sentiment can impact the attractiveness of debt versus equity.

Here is additional insight into the company's core values: Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).

Tempest Therapeutics, Inc. (TPST) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For investors eyeing Tempest Therapeutics, Inc. (TPST), a thorough examination of these metrics provides critical insights.

Assessing Tempest Therapeutics, Inc. (TPST)'s Liquidity:

Analyzing Tempest Therapeutics, Inc. (TPST)'s liquidity involves scrutinizing key ratios and cash flow dynamics to gauge its capacity to cover immediate liabilities. Here's a breakdown:

• Current and Quick Ratios: These ratios offer a snapshot of Tempest Therapeutics, Inc. (TPST)'s ability to pay off its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets, providing a more conservative measure.
• Analysis of Working Capital Trends: Monitoring the trend of Tempest Therapeutics, Inc. (TPST)'s working capital—the difference between its current assets and current liabilities—helps in understanding its operational efficiency and short-term financial health.
• Cash Flow Statements Overview: A review of Tempest Therapeutics, Inc. (TPST)'s cash flow statements, focusing on operating, investing, and financing activities, reveals how the company generates and uses cash. Positive operating cash flow is particularly crucial as it indicates the company's core business operations are a reliable source of liquidity.
• Potential Liquidity Concerns or Strengths: Identifying any red flags, such as declining cash reserves or negative working capital, is essential. Conversely, a strong cash position and consistent positive cash flows indicate a robust liquidity profile.

Without specific 2024 fiscal year data for Tempest Therapeutics, Inc. (TPST), a detailed numerical analysis of these elements is not possible. However, investors should seek these figures from the company's financial reports to perform a comprehensive assessment.

To delve deeper into who is investing in Tempest Therapeutics, Inc. (TPST) and their motivations, check out: Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who’s Buying and Why?

Tempest Therapeutics, Inc. (TPST) Valuation Analysis

Assessing whether Tempest Therapeutics, Inc. (TPST) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst opinions.

Key valuation metrics to consider include:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. However, given that Tempest Therapeutics, Inc. is a clinical-stage biopharmaceutical company, it may not have significant earnings, rendering the P/E ratio less relevant.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market value of a company relative to its book value of equity. This can provide insights into whether the stock is trading at a premium or discount to its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (market capitalization plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). Similar to the P/E ratio, the EV/EBITDA ratio may be less useful for Tempest Therapeutics, Inc. if it has limited or negative EBITDA.

Analyzing stock price trends over the last 12 months (or longer) can reveal investor sentiment and market perception of the company's prospects. Significant price fluctuations may be indicative of volatility and risk.

As a clinical-stage biopharmaceutical company, dividend yield and payout ratios are typically not applicable to Tempest Therapeutics, Inc., as the company is likely reinvesting its resources into research and development rather than distributing dividends.

Analyst consensus on Tempest Therapeutics, Inc.'s stock valuation (buy, hold, or sell) reflects the collective opinion of financial analysts regarding the stock's potential. These ratings can influence investor decisions and market movements.

For more in-depth insights into Tempest Therapeutics, Inc.'s investor profile, consider exploring: Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who’s Buying and Why?

Tempest Therapeutics, Inc. (TPST) Risk Factors

Investing in Tempest Therapeutics, Inc. (TPST) involves navigating a complex landscape of risks, both internal and external, that could significantly impact the company's financial health. These risks span industry competition, regulatory changes, market conditions, and the company's specific operational and strategic execution.

Here's an overview of key risk areas:

• Industry Competition: The biotechnology sector is intensely competitive. Tempest Therapeutics faces competition from established pharmaceutical companies, other biotech firms, and academic institutions, all vying for market share in oncology treatments. This competition can affect pricing, market acceptance, and the pace of innovation.
• Regulatory Changes: The development and commercialization of pharmaceutical products are heavily regulated. Changes in regulations by bodies like the FDA can impact the approval process, clinical trial requirements, and post-market surveillance, potentially increasing costs and delaying timelines.
• Market Conditions: Broader economic downturns or shifts in investor sentiment towards the biotech industry can affect Tempest Therapeutics' ability to raise capital, impacting its financial runway and strategic flexibility.

Specific risks highlighted in recent earnings reports or filings may include:

• Operational Risks: These involve challenges in executing clinical trials, managing supply chains, and scaling up manufacturing processes. Delays or failures in these areas can increase costs and delay product launches.
• Financial Risks: As a clinical-stage company, Tempest Therapeutics relies heavily on external funding. Risks include the ability to secure additional financing on favorable terms, manage cash burn, and achieve profitability.
• Strategic Risks: These encompass decisions related to pipeline prioritization, partnering strategies, and market entry. Poor strategic choices can lead to misallocation of resources and missed opportunities.

Mitigation strategies or plans, if available, often include:

• Diversification of Pipeline: Developing multiple drug candidates targeting different cancer types can reduce the risk associated with the failure of a single program.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide financial support, development expertise, and commercialization capabilities.
• Adaptive Clinical Trial Designs: Implementing flexible trial designs that allow for adjustments based on interim data can improve efficiency and increase the likelihood of success.
• Proactive Regulatory Engagement: Maintaining open communication with regulatory agencies can help navigate the approval process and address potential concerns early on.

Investors should carefully consider these risks and mitigation strategies when evaluating Tempest Therapeutics, Inc. (TPST) as an investment.

More insights can be found here: Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors

Tempest Therapeutics, Inc. (TPST) Growth Opportunities

Tempest Therapeutics, Inc. faces a challenging landscape, particularly given its financial results and recent strategic shifts. Investors should consider these factors when evaluating the company's future growth prospects. Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who’s Buying and Why?

Analysis of key growth drivers for Tempest Therapeutics, Inc. reveals a focus on advancing its clinical programs. However, the company's announcement in November 2023 of strategic prioritization and a workforce reduction suggests a pivot in their approach, potentially impacting the pace of development. Key areas to consider include:

• Product Innovations: Evaluating the potential of new therapies and their stages of development is crucial.
• Market Expansion: Assessing the addressable market for Tempest Therapeutics, Inc.'s drug candidates and their competitive positioning.
• Acquisitions: There is no information about acquisitions.

Future revenue growth projections and earnings estimates are difficult to ascertain given the company's current financial status. In 2024, Tempest Therapeutics, Inc. reported a net loss of $78.9 million, or $2.11 per share. The company's future is tied to the success of its clinical trials and any potential partnerships or funding it can secure.

Strategic initiatives and partnerships could significantly influence Tempest Therapeutics, Inc.'s trajectory. The company's pipeline and any collaborations to advance their programs are key factors to watch.

Competitive advantages that could position Tempest Therapeutics, Inc. for growth are not immediately evident given its financial challenges. Potential advantages might stem from unique aspects of its drug candidates or strategic partnerships.

Here's an overview of Tempest Therapeutics, Inc.'s financial results: